Laura Eddy opened Eddy\'s Carpet Cleaners on March 1. During March, the followin

Question

Laura Eddy opened Eddy's Carpet Cleaners on March 1. During March, the following transactions were completed. Mar. 1 Invested $10,320 cash in the business. 1 Purchased used truck for $6,430, paying $3,215 cash and the balance on account. 3 Purchased cleaning supplies for $1,102 on account. 5 Paid $1,656 cash on one-year insurance policy effective March 1. 14 Billed customers $4,887 for cleaning services. 18 Paid $1,527 cash on amount owed on truck and $408 on amount owed on cleaning supplies. 20 Paid $1,715 cash for employee salaries. 21 Collected $1,453 cash from customers billed on March 14. 28 Billed customers $2,584 for cleaning services. 31 Paid gas and oil for month on truck $190. 31 Withdrew $741 cash for personal use. The chart of accounts for Eddy's Carpet Cleaners contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 301 L. Eddy, Capital, No. 306, L. Eddy, Drawing, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries Expense

Explanation / Answer

Mar. 1 Invested $10,320 cash in the business. Cash Dr. 10320 L. Eddy, Capital Cr. 10320 1 Purchased used truck for $6,430, paying $3,215 cash and the balance on account. Equipment Dr. 6430 Cash Cr. 3125 Accounts payable Cr. 3305 3 Purchased cleaning supplies for $1,102 on account. Cleaning supplies Dr. 1102 Accounts payable Cr. 1102 5 Paid $1,656 cash on one-year insurance policy effective March 1. Prepaid insurance Dr. 1656 Cash Cr. 1656 14 Billed customers $4,887 for cleaning services. Accounts receivable Dr. 4887 Service revenue Cr. 4887 18 Paid $1,527 cash on amount owed on truck and $408 on amount owed on cleaning supplies. Accounts payable Dr. 1935 Cash Cr. 1935 20 Paid $1,715 cash for employee salaries. Salaries expense Dr. 1715 Cash Cr. 1715 21 Collected $1,453 cash from customers billed on March 14. Cash Dr. 1453 Accounts receivable Cr. 1453 28 Billed customers $2,584 for cleaning services. Accounts receivable Dr. 2584 Service revenue Cr. 2584 31 Paid gas and oil for month on truck $190. Gas & oil expense Dr. 190 Cash Cr. 190 31 Withdrew $741 cash for personal use. L. Eddy, Drawing Dr. 741 Cash Cr. 741

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